Co-Diagnostics, Inc. Announces Elimination of Debt, Additional Capital Infusion
January 30, 2019
Transaction included $3M of preferred shares, and the elimination
of $2M of debt
SALT LAKE CITY–(BUSINESS WIRE)–Co-Diagnostics, Inc. (Nasdaq: CODX), a molecular diagnostics
company with a unique, patented platform for the development of
molecular diagnostic tests, announced today the sale of $3 million of
preferred shares, convertible to common stock at a fixed price of $1.20
per share. The transaction consisted of negotiating the conversion of a
$2M note to preferred stock, effectively eliminating the Company’s debt,
and an additional sale of $1M of preferred shares for cash.
The news followed recent Company announcements of its CoPrimer™
technology platform being presented at the Plant and Animal Genome (PAG)
XXVII conference, and the launch of the first private-label CoPrimer
product. CoPrimer technology has been shown to offer significant
advantages compared to other PCR platforms, including a substantial
reduction in errors that lead to false positive results, and
dramatically improved multiplex test capabilities for molecular
diagnostics, including infectious disease testing, agrigenomics, liquid
biopsy and NGS applications.
Dwight Egan, CEO of Co-Diagnostics, commented, “This financing benefits
our shareholders by providing additional capital to accelerate our
growth strategy. We believe that this exciting era of the Company’s
expansion will continue as we build on our notable scientific,
regulatory, and strategic milestones from 2018. The Company’s improved
balance sheet also provides a strong foundation for continued momentum.”
About Co-Diagnostics, Inc.:
Co-Diagnostics, Inc., a Utah corporation, is a molecular diagnostics
company that develops, manufactures and markets a new, state-of-the-art
diagnostics technology. The Company’s technology is utilized for tests
that are designed using the detection and/or analysis of nucleic acid
molecules (DNA or RNA). The Company also uses its proprietary technology
to design specific tests to locate genetic markers for use in industries
other than infectious disease and license the use of those tests to
specific customers.
Forward-Looking Statements:
This press release contains forward-looking statements.
Forward-looking statements can be identified by words such as
“believes,” “expects,” “estimates,” “intends,” “may,” “plans,” “will”
and similar expressions, or the negative of these words. Such
forward-looking statements are based on facts and conditions as they
exist at the time such statements are made and predictions as to future
facts and conditions. Forward-looking statements in this release
include statements regarding the (i) use of funding proceeds, (ii)
expansion of product distribution, (iii) acceleration of initiatives in
liquid biopsy and SNP detection, (iv) use of the Company’s liquid biopsy
tests by laboratories, (v) capital resources and runway needed to
advance the Company’s products and markets, (vi) increased sales in the
near-term, (vii) flexibility in managing the Company’s balance sheet,
(viii) anticipation of business expansion, and (ix) benefits in research
and worldwide accessibility of the CoPrimer technology and its
cost-saving and scientific advantages. Forward-looking statements are
subject to inherent uncertainties, risks and changes in circumstances.
Actual results may differ materially from those contemplated or
anticipated by such forward-looking statements. Readers of this press
release are cautioned not to place undue reliance on any forward-looking
statements. The Company does not undertake any obligation to update any
forward-looking statement relating to matters discussed in this press
release, except as may be required by applicable securities laws.
Contacts
Company Contact:
Andrew Benson
Co-Diagnostics Investor
Relations
801-438-1036
investors@codiagnostics.com